Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1139

Introduced by Assembly Member Campos

February 27, 2015

An act tobegin delete amend Section 34000 of the Water Code, relating to waterend deletebegin insert add Section 17053.98 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levyend insert.


AB 1139, as amended, Campos. begin deleteCalifornia Water District Law. end deletebegin insertPersonal income taxes: credit: turf removal.end insert

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The Personal Income Tax Law allows various credits against the taxes imposed by that law.

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This bill would, for taxable years beginning on and after January 1, 2015, allow a credit to a taxpayer participating in a lawn replacement program, as defined, in an amount equal to $2 per square foot of conventional lawn removed from the taxpayer’s property, up to $50,000 per taxable year, as provided. The bill would make findings and declarations in this regard.

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This bill would take effect immediately as a tax levy.

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Existing law, the California Water District law, regulates the formation and operation of water districts in the state.

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This bill would make nonsubstantive changes to the provision naming the California Water District Law.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

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The Legislature finds and declares all of the

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3(a) California is currently enduring the fourth year of one of
4the worst droughts in the state’s history.

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5(b) It is estimated that landscaping accounts for 60 percent of
6all water consumed by residential customers. California lawns
7cover more than 300,000 acres and consume more than 1.5 million
8acre-feet of water per year.

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9(c) Californians have already begun to minimize lawn watering
10by replacing conventional lawns with water-saving and
11drought-resistant plants or artificial grass. These landscaping
12alternatives are dependable tools for water conservation.

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13(d) In light of severe drought, California has an interest in
14encouraging consumers to decrease water usage. Establishing a
15state tax credit for the removal and replacement of conventional
16grass landscapes will incentivize water conservation.

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begin insertSEC. 2.end insert  

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begin insertSection 17053.98 is added to the end insertbegin insertRevenue and Taxation
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begin insert17053.98.end insert  

(a) For each taxable year beginning on or after
20January 1, 2015, there shall be allowed a credit against the “net
21tax,” as defined by Section 17039, to a qualified taxpayer in an
22amount equal to two dollars ($2) per square foot of conventional
23lawn removed from the qualified taxpayer’s qualified real property,
24not to exceed fifty thousand dollars ($50,000) per taxable year.

25(b) For the purposes of this section, the following definitions
26shall apply:

27(1) “Lawn replacement program” means a local water agency
28program that offers incentives to customers encouraging the
29replacement of conventional lawns with artificial lawns,
30drought-resistant plants, or other water-efficient landscaping.

31(2) “Multifamily residential real property” means any real
32property that is improved with, or consisting of, a building
33containing more than one unit that is intended for human
34habitation, or any mixed residential-commercial buildings or
35portions thereof that are intended for human habitation.
36Multifamily residential real property includes residential hotels
37but does not include hotels and motels that are not residential

P3    1(3) “Qualified real property” means either multifamily
2residential real property or single-family real property in this

4(4) “Qualified taxpayer” means a person that owns qualified
5real property that is participating in a lawn replacement program.

6(5) “Single-family residential real property” means any real
7property that is improved with, or consisting of, a building
8containing not more than one unit that is intended for human

10(c) Section 41 does not apply to the credit allowed by this

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begin insertSEC. 3.end insert  

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This act provides for a tax levy within the meaning of
13Article IV of the Constitution and shall go into immediate effect.

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Section 34000 of the Water Code is amended to



This division shall be known, and may be cited, as the
17California Water District Law.

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